The first phase of Khesht Oilfield development in Fars Province will go on stream in the summer, managing director of South Zagros Oil and Gas Production Company said on Sunday.
"Phase 1 production capacity stands at 20,000 barrels per day," Abolhassan Mohammadi was also quoted as saying by IRNA.
Khesht Oilfield's crude will be exported through Bandar Genaveh Terminal in Bushehr Province, he added.
Referring to the development of second phase, he said, "The field’s oil output will surpass 30,000 bpd, once the drilling operation of Phase 2 ends."
According to the official, Phase 1 has made 95% progress and plans have been made to expedite the key project by utilizing local resources so that it becomes operational soon.
The development project consists of building units, namely separation, desalting, gas compression and associated infrastructure to process and transmit up to 30,000 bpd of crude per day.
In addition, it has four pipelines, totally stretching over 24 kilometers, as well as 98 km of export pipeline to Genaveh Port.
Development of the field, 45 km off the southwestern city of Kazeroun, Fars Project, started in 2006.
The field is estimated to hold more than a billion barrels of crude oil in place, of which 270,000 million barrels would be recoverable.
Other exploration activities are being undertaken to find more oil and gas reserves in the southern Fars Province.
"An exploration well has been dug 10 kilometers north of Khesht City and 35 km west of Kazeroun," exploration manager at the National Iranian Oil Company, Hormoz Qalavand, was quoted as saying.
The project is aimed at exploring oil and gas reserves in parts of Asmari, Bangestan and Khami hydrocarbon layers.
Following the issuance of a drilling permit by the Cabinet in 2015, funding was allocated and a drilling rig, owned by the National Iranian Drilling Company, was dispatched to the site. The well was drilled up to a depth of approximately 5,300 meters, which drilling operations are expected to conclude within a month.
